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If You Anticipate That the Inflation Rate Is Going to Rise

Question 246

Multiple Choice

If you anticipate that the inflation rate is going to rise from 2 percent to 5 percent next year, you should


A) save your funds at a fixed rate of interest.
B) borrow funds at a fixed rate of interest.
C) keep your funds in your sock drawer.
D) wait to buy a house until next year.

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